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If You Invested $1000 in Edwards Lifesciences a Decade Ago, This is How Much It'd Be Worth Now

Zacks Equity Research
·4-min read

For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.

Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.

What if you'd invested in Edwards Lifesciences (EW) ten years ago? It may not have been easy to hold on to EW for all that time, but if you did, how much would your investment be worth today?

Edwards Lifesciences' Business In-Depth

With that in mind, let's take a look at Edwards Lifesciences' main business drivers.

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Edwards Lifesciences Corporation, headquartered in Irvine, CA, deals in products and technologies aimed at treating advanced cardiovascular diseases, especially structural heart disease in critically ill patients. The company is the world’s leading manufacturer of tissue heart valves and repair products used to replace or repair a patient's diseased or defective heart valve.

Edwards is also a leading player in hemodynamic monitoring systems used to measure a patient's cardiovascular function in the hospital setting. Its products and technologies are grouped into four main areas:

Transcatheter Aortic Valve Replacement (TAVR): Comprised 64.6% of total revenues in 2023, 10.3% growth from 2022. The segment includes the SAPIEN family of valves used to treat heart valve diseases using catheter-based approaches for patients who have severe symptomatic aortic stenosis and certain patients with congenital heart disease.

Transcatheter Mitral and Tricuspid Therapies (TMTT) (3.3%, up 70.2%): This consists of the PASCAL PRECISION and the Cardioband transcatheter valve repair systems for mitral and tricuspid valve repair, which are commercially available in Europe. Presently, the system is commercially available in the United States and Japan for degenerative mitral regurgitation patients.

Surgical Structural Heart (16.6%; up 11.9%): This primarily comprises tissue heart valves and heart valve repair products for the surgical repair or replacement of a patient's heart valve. The portfolio also includes a diverse line of products used during minimally invasive surgical procedures and cannulae, embolic protection devices and other products used during cardiopulmonary bypass. The new MITRIS RESILIA valve is now commercially available in the United States and Japan.

Critical Care (15.5%, up 8.5%): This includes pulmonary artery catheters, disposable pressure transducers and advanced monitoring systems, balloon catheter-based products, surgical clips and inserts. The HemoSphere monitoring platform displays valuable physiological information. Edwards’ latest algorithm, Acumen Assisted Fluid Management software, provides patient-specific fluid suggestions to help keep patientsin an optimal range during surgery.

Bottom Line

Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For Edwards Lifesciences, if you bought shares a decade ago, you're likely feeling really good about your investment today.

A $1000 investment made in March 2014 would be worth $7,663.66, or a gain of 666.37%, as of March 27, 2024, according to our calculations. This return excludes dividends but includes price appreciation.

Compare this to the S&P 500's rally of 180.89% and gold's return of 59.51% over the same time frame.

Analysts are anticipating more upside for EW.

Edwards Lifesciences exited 2023 with substantial growth across each of its four product groups and is committed to advance its leadership in surgical structural heart therapies. The strategic spin-off of Critical Care aims to boost the company’s R&D and innovations, allowing for a sharper focus on structural heart disease. The ongoing global expansion of the PASCAL Precision platform and the European launch of the EVOQUE system are hailed as significant milestones within TMTT. The SAPIEN 3 Ultra RESILIA platform continues its strong uptake in the United States. A strong flexible balance sheet buoys optimism. We assume a 9.8% CAGR growth in the company’s revenues through 2026. Meanwhile, Edwards’ soaring operational expenses are hurting the performance of its key metrics. Adverse currency impacts are concerning.

Over the past four weeks, shares have rallied 7.99%, and there have been 8 higher earnings estimate revisions in the past two months for fiscal 2024 compared to none lower. The consensus estimate has moved up as well.

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Zacks Investment Research